MIS 2E

Chapter 1: Information Systems: An Overview TRUE/FALSE 1. The most common PDA is a smartphone. ANS: T PTS: 1 REF: 4 ...

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Chapter 1: Information Systems: An Overview

TRUE/FALSE 1. The most common PDA is a smartphone. ANS: T

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2. Twitter is an example of a management information system (MIS). ANS: F

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3. The terms “information systems” and “information technologies” are used interchangeably. ANS: T

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4. Skills in using word processing software are an example of information literacy. ANS: F

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5. Business Intelligence (BI) includes historical views of business operations. ANS: T

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6. Computers are most beneficial in transaction processing operations. ANS: T

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7. Many MIS applications are used in both the private and public sectors. ANS: T

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8. An information system typically provides three major components: data, intelligence, and information. ANS: F

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9. Generally, there are three sources of data: internal, external and generated. ANS: F

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10. Customers, competitors, and suppliers are examples of internal data sources. ANS: F

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11. A database management system (DBMS) is used to create, organize, and manage databases. ANS: T

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12. The quality of information is determined by its usefulness to users. ANS: T

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13. Most information systems do not make use of graphical user interfaces. ANS: F

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14. To achieve its goals, an information system might use many different information technologies. ANS: T

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15. Information is the most important resource in any organization. ANS: F

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16. Intranets are often used to provide basic HR functions, such as employees checking how much vacation time they have left or looking up how much they have in their 401(k) plans. ANS: T

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17. Buyer power is high when customers have few choices and low when they have many choices. ANS: F

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18. An effective financial information system (FIS) should provide timely, accurate, and integrated information about the ma rketing mix. ANS: F

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19. Rivalry among existing competitors is high when many competitors occupy the same marketplace position. ANS: T

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20. In the future, most information system software will be able to run on personal computers without problems. ANS: T

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MULTIPLE CHOICE 1. A typical PDA includes a(n) ____. a. external monitor b. calendar ANS: B

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c. d.

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2. ____ is a social networking Web site. a. Facebook b. Sony Music Group ANS: A

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mouse external keyboard

c. d.

XML Droid

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3. ____ is understanding the role of information in generating and using business intelligence. a. Computer literacy c. Management information systems b. Information literacy d. Transaction processing ANS: B

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4. A ____ system is a type of transaction processing system (TPS). a. social networking c. payroll b. business intelligence d. database ANS: C

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5. Management information system (MIS) ____ include programs developed in-house. a. human elements c. hardware components b. data processes d. software components ANS: D

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6. In designing an MIS, the first task is to define the system’s ____ clearly. a. objectives c. hardware components b. database d. users ANS: A

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7. Sales records are an example of the ____ component of an information system. c. database a. internal data b. external data d. process ANS: A

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8. Typically, data has a(n) ____ orientation. a. elongated b. amplified ANS: C

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c. d.

time short

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9. Microsoft Access is an example of the ____ component of an information system. a. internal data c. database b. external data d. process ANS: C

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10. The output of an information system is ____. a. data b. a database ANS: D

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11. Information technologies include ____. a. RFID tags b. internal data ANS: A

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c. d.

a process information

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c. d.

the four Ms Twitter

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12. Scheduling and assigning employees might be handled by a(n) ____. a. PIS c. FIS b. MFIS d. LIS ANS: A

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13. The four Ms of resources are: ____. a. management, motivation, manpower, and monitorin b. materials, money, modeling, and monitoring c. manpower, machinery, materials, and money d. manpower, monitoring, movement, and modeling ANS: C

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14. Managers could use a(n) ____ to assess the effect on final product costs of a seven percent increase in raw materials. a. HRIS c. PIS b. MFIS d. MKIS ANS: B

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15. Focus is one of ____. a. the goals of a FIS b. the benefits of a DBMS ANS: D

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c. d.

the Five Forces Michael Porter’s three strategies

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16. A successful ____ program helps improve customer service and create a long term relationship between an organization and its customers. a. CRM c. ERP b. DMBS d. SCM ANS: A

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17. ____ is the opposite of buyer power. a. The threat of new entrants b. Rivalry among existing competitors ANS: D

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c. d.

The thread of substitute products Supplier power

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18. Online brokerage firms operate in a highly competitive environment, so they use information technologies to make their ervices s more unique in order to combat ____. a. supplier power c. rivalry among existing competitors b. buyer power d. the threat of new entrants ANS: C

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19. A ____ should have knowledge and understanding of data warehouse and data mining tools. a. systems analyst c. webmaster b. computer programmer d. database administrator ANS: D

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20. Future progress in ____ includes further development in natural language processing that should make information systems easier to use. c. personal computing power a. artificial intelligence b. computer literacy d. computer criminals ANS: A

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COMPLETION 1. In grocery and retail stores, a(n) ____________________ system speeds up service by reading the universal product codes(UPCs) on items in a shopping cart. ANS: point-of-sale (POS) point-of-sale POS PTS: 1

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2. Computer ____________________ means having a basic knowledge of hardware and software, the Internet, and collaboration tools and technologies. ANS: literacy PTS: 1

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3. A(n) ____________________ is an organized integration of hardware and software technologies, data processes, and humanlements e designed to produce timely, integrated, relevant, accurate, and useful information for decision making purposes. ANS: management information system (MIS) management information system MIS PTS: 1

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4. In a management information system, the application or organization determines the type of ____________________ used. ANS: software PTS: 1

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5. The ____________________ component of an information system is considered the input to the system. ANS: data PTS: 1

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6. A(n) ____________________ is the heart of an information system. ANS: database PTS: 1

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7. The purpose of an information system’s ____________________ component is generating the most useful type of information for making decisions. ANS: process PTS: 1

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8. The ultimate goal of a(n) ____________________ is to generate business intelligence (BI). ANS: information system PTS: 1

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9. The Internet is an example of an information ____________________. ANS: technology PTS: 1

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10. A(n) ____________________ is designed to reduce the cost of transportation materials while maintaining safe and reliable delivery. ANS: logistics information system (LIS) logistics information system LIS PTS: 1

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11. The goal of a financial information system (FIS) is to provide information to financial executives in a(n) _____________ _______ manner. ANS: timely PTS: 1

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12. The Five Forces Model was created by ____________________. ANS: Michael Porter Porter PTS: 1

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13. The top information systems job belongs to either the chief technology officer (CTO) or the ____________________. ANS: chief information officer (CIO) chief information officer CIO PTS: 1

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14. Part of the ____________________’s job is to provide network and cybersecurity. ANS: network administrator PTS: 1

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15. In the future, the development in ____________________ language processing should make information systems easier to use . ANS: natural PTS: 1

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SHORT ANSWER 1. What are some ways in which students come into contact with information systems? ANS: Students use computers and office suite software and might take online classes. Computers are often used to grade examnswers a and generate detailed reports comparing the performance of each student in classes. Computers and information systems also calculate grades and GPAs and can deliver this information to students. PTS: 1

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2. How can banks use computers and information systems? ANS: Banks may use computers and information systems for generating a customers monthly statement and running ATM machinesrfomany banking activities. PTS: 1

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3. How do organizations use social networking sites? ANS: Organizations use social networking sites to give customers up-to-date information and even how-to support with videos. PTS: 1

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4. Compare information systems and information technologies. ANS: Information systems are broader in scope than information technologies, but the two overlap in many areas. Both are used to help organizations be more competitive and to improve their overall efficiency and effectiveness. Information technologies offer many advan tages for improving decision making but involve some challenges, too, such as security and privacy issues. PTS: 1

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5. Give an example of how an MIS might be used in the public sector. ANS: In the public sector, an MIS for a police department, for example, could provide information such as crime statistics,rime c forecasts, and allocation of police units. Management can examine these statistics to spot increases and decreases in crime rates or pes ty of crimes and analyze this data to determine future deployment of law enforcement personnel. PTS: 1

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6. List four qualities information must have to make it useful. ANS: To be useful, information must have the following qualities: Timeliness Integration with other data and information Consistency and accuracy Relevance PTS: 1

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7. Describe how a personal information system (PIS) helps decision makers. ANS: A personal information system (PIS) or human resource information system (HRIS) is designed to provide information that helps decision makers in personnel carry out their tasks more effectively. PTS: 1

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8. Explain the main difference between an Intranet and the Internet. ANS: The main difference between an Intranet and the Internet is that intranets are private and the Internet is public. PTS: 1

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9. Define and describe a manufacturing information system (MFIS). ANS: A manufacturing information system (MFIS) is used to manage manufacturing resources so that companies can reduce manufac turing costs, increase product quality and make better inventory decisions. MFISs can perform many types of analysis with a high degre e of timeliness and accuracy. PTS: 1

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10. Explain the difference in focus for a bottom-line strategy and a top-line strategy. ANS: The focus of a bottom-line strategy is improving efficiency by reducing overall costs. A top-line strategy focuses on nerating ge new revenue by offering new products and services to customers or increasing revenue by selling existing products and services to newustomers. c PTS: 1

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11. How might an organization combat the threat of new entrants? ANS: Organizations often use focus strategies to ensure that this threat remains low. For example, developing a search engine that could compete successfully with Google would be difficult. PTS: 1

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12. Describe the role of the chief privacy officer. ANS: The chief privacy officer is an executive position that includes responsibility for managing the risks and business impacts of privacy laws and policies. PTS: 1

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13. Describe the role of the systems analyst and the knowledge required for the position. ANS: The systems analyst is responsible for the design and implementation of information systems. In addition to computer kno wledge and information systems background, this position requires a thorough understanding of business systems and functional areas with a busi ness organization. PTS: 1

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14. Describe how networking technologies will improve in the future. ANS: Networking technologies will improve, so connecting computers will be easier, and sending information from one location to another will be faster. Compatibility issues between networks will become more manageable, and integrating voice, data, and images onethsame transmission medium will improve communications quality and information delivery. PTS: 1

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15. Describe the impact of the growth of the Internet in the future. ANS: Internet growth and acceptance will continue, which will put small and large organizations on the same footing, regardle ss of their financial status. PTS: 1

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ESSAY 1. What are PDAs and smartphones? ANS: The most common PDA is a smartphone (such as an iPhone, Droid or a Blackberry). A typical PDA includes a calendar, addre ss book, and task-list programs; more advanced PDAs often allow for wireless connection to the Internet and have built-in MP3 players . Smartphones are mobile phones with advanced capabilities, much like a mini PC. They include e-mail and Web browsing features, and mostave h a built-in keyboard or an external USB keyboard. PTS: 1

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2. What should a knowledge worker know about Business Intelligence? ANS: Knowledge workers should know the following: Internal and external sources of data How data is collected Why data is collected What type of data should be collected How data is converted to information and eventually to business intelligence How data should be indexed and updated How data and information should be used to gain a competitive advantage PTS: 1

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3. What is a database? What role does a database play in an information system? ANS: A database, the heart of an information system, is a collection of all relevant data organized in a series of integrated files. A comprehensive database is essential for the success of any information system. To create, organize, and manage databases, a database m anagement system (DBMS) is used, such as Microsoft Access or FileMaker Pro for home or small-office use. In a large organization, a DBMS,such as Oracle or IBM DB2, might be used. Databases are also important for reducing personnel time needed to gather, process, and interpret data manually. With computerized a database and a DBMS, data can be treated as a common resource that’s easy to access and use. PTS: 1

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4. What type of decisions are supported by a LIS? ANS: The following are a few examples of decisions supported by an LIS: Improving routing and delivery schedules Selecting the best modes of transportation Improving transportation budgeting Improving shipment planning PTS: 1

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5. Describe the threat of substitute products or services and how organizations fight this threat. ANS: The threat of substitute products or services is high when many alternatives for an organization’s products or servicesare available. Some organizations add services to make them more distinct in the marketplace, such as Amazon.com’s personalized recommendati ons. Other organizations add fees to discourage customers from switching to a competitor, such as cell phone companies adding charg es for switching to another provider before the customer contract is up. PTS: 1

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